The move from ACA stems from a workforce review aiming at reducing labour and contract costs across Australia by 20%, while parent company Anglo American plans to axe 19,000 jobs this year on the back of weaker commodities markets.

ACA spokesman Aldo Pennini confirmed to International Longwall News that Moranbah North will be affected.

He said the process started on Monday and will be complete by the end of March.

Pennini added some ACA operations will have more cuts than others but said he was not yet in a position to provide more details.

As part of the job cuts there will be 60 voluntary redundancies, which Pennini considered a pretty good response.

“The fact is we have tried very hard to minimise the amount of non voluntary redundancies,” he said.

In the announcement, also made to all employees Monday morning, ACA chief executive officer Seamus French said the 120 voluntary redundancies represented 3% of the company’s total workforce.

“The focus of the review has been to streamline the business, consolidate shared services and eliminate duplication of effort,” French said.

“In conducting this review every effort has been made to minimise the impact on our employees by implementing a voluntary redundancy scheme, freezing recruitment, redeploying employees to fill vacancies and eliminating fixed-term contractor positions.”

French said ACA had liaised with the unions and other stakeholders throughout the process, and affected employees will be provided with individual career advice, job searching resources and referral to an independent financial advisor.

In some positive news, Pennini said more than 200 young people involved with ACA’s graduate and apprentice programs will not be affected by the cuts.

“Anglo recognises its responsibility to supporting young people in our mining communities and will continue its commitment to graduate and apprenticeship programs – it makes good business sense for the future of ACA and our state,”

French said.

In response to the news, Queensland Mines and Energy Minister Geoff Wilson said he held talks with Construction, Forestry, Mining Energy Union to discuss ACA’s job cuts.

"Unfortunately today's job losses are unlikely to be the last,” he said yesterday.

“What we're seeing here is the human face of the worst global economic crisis since the Depression. Queensland is not alone.”

He added the government had its rapid response teams ready to assist workers made redundant, and had local teams in 14 regions already helping workers.

“So far, more than half the workers registered with our teams have either got another job or no longer need our assistance.

"One of the key roles of the teams is to help workers identify their skills, help them explore job opportunities in other industries and get them working again."

A month ago, 42 Anglo production workers were made redundant from the Dawson north pit closure, near Moura in the southeastern arm of the Bowen Basin.